Real reason why CBN stop sales of forex to BDCoperators

Irked by the over profiteering of the operators, Central Bank of Nigeria (CBN) taken drastic step by stopping sales of foreign exchange to Bureau De Change operators.

The BDCs had continued to make huge profits while Nigerians suffered in pain. Rather than serving the purpose of their existence, they are providimg forex to retail user and had become wholesale and illegal dealers.

According to the apex bank, the decision to stop the sales was based on the disappointment and great concerns that the BDCs had defeated their purpose of existence to provide forex to retail user, but instead, they had become wholesale and illegal dealers.

Investigation by allcitynews.ng from some of the operators showed that the move could shoot up the price of foreign exchange any moment from now.

The CBN Governor, Godwin Emefiele, let out the cat from the bag this afternoon during Monetary Policy Committee two-day meeting in Abuja.

He said the Monetary Policy Rate (MPC) woukd retained the MPC at 11.5 per cent at the end of the meeting.

It also retained the Cash Reserve Ratio and Liquidity Ratio at 27.5 per cent and 30 per cent respectively.

Announcing the committee’s decision, Emefiele said, “The MPC made the decision to hold all parameters constant. The committee thought by unanimous vote to retain the Monetary Policy Rate at 11.5 per cent.

“In summary, MPC voted as follows, one, retain MPR at 11.5 per cent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 per cent; and retain the Liquidity Ratio at 30 per cent.”

Speaking on the the decision to stop forex sales to the BDCs, he said, the MPC noted with disappointment and great concerns that the BDCs had defeated their purpose of existence to provide forex to retail user, but instead, they had become wholesale and illegal dealers.
He however said commercial banks would be monitored to provide forex for the legitimate use of Nigerians.